Vietcombank: Profit before tax in 2021 is nearly VND 27,376 billion, doubtful debt is 4 times higher

Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank, HOSE: VCB) reported a pre-tax profit in 2021 of nearly VND 27,376 billion, up 19% over the previous year. Doubtful debt increased sharply compared to the beginning of the year.

In general, Vietcombank's business activities in 2021 grew compared to the previous year, but there were not too many highlights.

Main activities earned VND 42,387 billion in net interest income, up 17% compared to the previous year. While interest income from customer loans increased slightly by 6%, deposit interest income (-25%) and interest income from securities (-13%) dropped sharply.

Profit from service activities increased 12% to 7,407 billion VND, mainly from payment services and other revenues. Profit from forex trading also increased by 12%, to VND4,378 billion thanks to an increase in spot foreign currency trading revenue of 24% (VND 8,204 billion).

Although it does not account for much of Vietcombank's income structure, trading securities earned more than 104 billion dong in profit, while last year it was only nearly 2 billion dong.

Profit from other activities increased by 33%, reaching more than 2,393 billion dong thanks to income from loans processed with the risk provision fund of 2,912 billion dong (+20%).

On the other hand, investment securities trading brought a loss of more than 85 billion dong, while the previous year only lost 98 million dong.

This year, Vietcombank spent 11,760 billion dong to make provision for credit risks, an increase of 18% compared to the previous year. As a result, the Bank reported a pre-tax profit of nearly VND 27,376 billion, up 19%. Profit after tax of the parent bank was more than VND 21,908 billion, also up 19%.

Thus, compared with the proposed consolidated profit before tax of nearly VND 25,686 billion, Vietcombank has exceeded nearly 7% of the target.

Consolidated business results in the fourth quarter of 2021 of VCB. Unit: Billion VND

As of December 31, 2021, the Bank's total assets increased by 7% compared to the beginning of the year, to more than 1.4 million billion VND. In which, cash increased by 19% (VND 18,011 billion), deposits at the State Bank decreased by 32% (to VND 22,506 billion), customer loans increased by 14% (VND 960.749 billion).

Regarding business capital, customer deposits increased by 10% compared to the beginning of the year, reaching nearly 1.14 million billion dong. Issuance of valuable papers decreased by 18% to 17,387 billion VND, mainly promissory notes, medium and long-term bonds in VND.